MEXICO CITY (REUTERS) – Mexican industrial output fell month-on-month for the first time in 11 months in April, even as activity rose by a record margin from the previous year thanks to a rebound from a pandemic-induced contraction in 2020, official data showed on Friday, June 11.
Compared with March, industrial output dropped 0.2% in seasonally adjusted terms as expansion in the mining sector was offset by declines in manufacturing, construction and energy, data published by national statistics office INEGI showed.
“Supply-chain frictions, cost-push pressures, lingering policy uncertainty, weak business confidence, and slow progress with the vaccination program are likely to weigh on the broad industrial sector for a while despite firmer external demand,” said Goldman Sachs economist Alberto Ramos.
The latest IHS Markit Mexico Manufacturing Purchasing Managers’ Index showed factory activity shrinking for the 15th straight month in May due to subdued sales, raw material shortages and the COVID-19 crisis. Still, the rate of decline was the second-slowest since the pandemic hit.
In annual terms, output posted its largest jump in over 2-1/2 decades in April, rising by 35.7% in adjusted terms and by 36.6% in unadjusted terms. Both increases were the biggest registered in INEGI’s online data bank, which extends back to 1994.
Industrial output hit bottom in May 2020 and has recovered as the economy gradually reopens, mobility increases, businesses adjust and external demand firms, said Goldman’s Ramos, who anticipated “significant positive spillovers from U.S. growth.”
The economy shrank by some 8.5% last year, the sharpest slump since the 1930s. Mexico is expected to recoup much of that in 2021, for which the government is forecasting 6.5% growth.
(Writing by Dave Graham and Anthony Esposito; Editing by Steve Orlofsky for REUTERS)
more recommended stories
Vila and Fonatur Director reaffirm their commitment to continue promoting projects
Vila Dosal and the federal official.
Mexican Navy will take control of the security at Mérida Airport
The Mexican Navy (SEMAR) will be.
Yucatan Restaurant Sector severely affected by the unstoppable price increase
The restaurants are resisting this increase.
Expansion of the Electric Network in Chelem, Yucatan
Progreso City Council, will expand the.
Dead baby found inside a prison in Puebla would have been used as a “mule”
The little body of the infant.
Mexican actor Roberto Palazuelos announces he will run for governor of Quintana Roo as the Movimiento Ciudadano candidate
Roberto Palazulelos is a Televisa’s Telenovelas.
LP Gas company worker dies from accidental electrocution in Downtown Mérida
After receiving the electric shock, the.
National Guard detains passenger at the Mérida airport carrying half a million pesos in cash
Agents of the National Guard questioned.
U.S. is concerned about AMLO’s Energy Reform.
AMLO’s reform could hinder joint clean.
U.S. Energy Secretary Jennifer Granholm expressed her concern about Mexico’s policies
U.S. airs concerns over Mexico energy.